MCQ - Retail Operations and Accounting Systems Computerised and manual (special journals). Some questions were adopted from Nobles, .T, Mattison, B, Matsumura, Best P., Fraser D.,(2015), Horngren's Financial Accounting.

Please provide your response in the table below.

Question No.	Correct answer (A, B, C or D?)	Question No.	Correct answer (A, B, C or D?)
1		6
2		7
3		8
4		9
5		10

1. An accounting system begins with:

A. The trial balance

B. The ledger

C. Chart of accounts

D. Reports

2. The outputs of a computerised accounting system are called:

A. Reports

B. Software

C. Processing

D. Trial balance

3. Account number 411 is most likely for a (an):

A. Asset

B. Liability

C. Owners equity

D. Revenue

4. A control account is:

A. A check figure in the general ledger

B. An account used for audit sampling of significant transactions

C. An account whose balance equals a group of related accounts in the general ledger

D. An account whose balance equals the sum of the balances in a group of related accounts in a subsidiary ledger.

5. A cash payment journal:

A. Debits cash for each transaction listed in this journal

B. Records only cash, not cheque receipts

C. Records all payments of cash made by the business

D. All of the above are true

6. A customer pays his $1,000 invoice 5 days after receiving it. Terms were 1/5, n/20. What would be recorded in the cash receipt journal?

A. Debit to cash $990

B. Credit to sales discount $10

C. Credit to sales revenue $1,000

D. Debit to sales revenue $10

7. Centex Sound Systems purchased inventory costing $8,000 from Sony on credit. Where should Centex record this transaction and what account is credited.

A. Cash payments journal; credit cash

B. Purchases journal; credit accounts payable

C. Sales journal; credit sales revenue

D. General journal; credit inventory

8. Every transaction recorded in the cash receipts journal includes a:

A. Credit to cash

B. Debit to accounts receivable

C. Debit to sales discounts

D. Debit to cash

9. The purchase journal is used to record all:

A. Purchases of assets

B. Payments of purchases on credit

C. Purchases of inventory

D. Purchases on credit

10. The individual accounts in the accounts receivable subsidiary ledger identify:

A. Creditors

B. Customers

C. Amounts to be paid

D. Suppliers